Associated Tc4 Setup Sheet For Real Estate
Real Estate asset has a book value of $33,135.53-Real Estate asset was sold for $54,000.00-Real Estate Commission on the sale was $3,240.00 (giving a profit on the sale of the property of $17,624.47).Upon the sale of the property, the purchaser paid $10,000.00 to my company and my company took back a mortgage of $44,000.00.My question is, how would the journal entry to record this sale look like? I use accrual based accounting system.I have figured out that the sale of the property would go into the debit column and the book value of the property, the real estate commission and profit on the sale of the property would go into the credit column.What I can't figure out is how to do a journal entry that would record the down payment and the mortgage. Any help you could give would be greatly appreciated.Thanks.Peter,This is a specialized area of bookkeeping which I'm not really up on, so I'm going to place your question in the 'Unanswered' section. There may be rules regarding taking a mortgage back on the sale; I don't know but it needs to be checked.I just attended a Real Estate Bookkeeping webinar this week by David Campbell and Renee Daggett. Renee has written a book titled, Managing Your Properties With QuickBooks that you might be interested in. The book is from a U.S. Perspective, but with a few adjustments, I'm guessing it would still assist you in booking your Canadian real estate.I assume you treat your real estate as inventory if real estate is your business not as a.
Associated Tc4 Setup Sheet For Real Estate Sale
Associated Tc4 Setup Sheet For Real Estate Agent
Sale of a capital asset of the business.I'd approach booking the entries this way (but check in with your accountant to be sure). Record the transactions one at a time and not as one big entry.